Merck & Company, Inc. · NYSE:MRK
Merck & — Q1 2019 Earnings Presentation
19 slides from Merck &'s earnings presentation, Apr 30, 2019
Slide 1: Q1 2019 Earnings Call
Q1 2019 EARNINGS CALL April 30, 2019
Slide 2: Forward-Looking Statement of Merck & Co., Inc.
We are an innovative, global healthcare leader, committed to improving health and well-being around the world. Forward-Looking Statement of Merck & Co., Inc., Kenilworth, N.J., USA This presentation from Merck & Co., Inc., Kenilworth, N.J., USA (the “company”) includes “forward-looking statements” w
Slide 3: Strategy in Action
STRATEGY IN ACTION Merck is well-positioned for growth and value Mission Vision Execution creation by addressing To discover, develop and Committed to being the Proven strategy to deliver provide innovative products premier, research-intensive growth and create long-term unmet medical needs, and ser
Slide 4: Q1 Performance Highlights
Q1 PERFORMANCE HIGHLIGHTS ALL GROWTH RATES EXCLUDE IMPACT OF EXCHANGE $ 10.8B Returned $2.5 billion to shareholders DELIVERED through dividends and share WORLDWIDE repurchases CREATED SALES SHAREHOLDER GROWTH 11% Executed on value-enhancing business development, including the acquisitions VALUE of I
Slide 5: Oncology: Strong KEYTRUDA and Lynparza Growth
ONCOLOGY: STRONG KEYTRUDA AND LYNPARZA GROWTH • KEYTRUDA growth of +60%1 year-over-year including +69%1 in International markets • Ex-U.S. approvals and reimbursement of 1L NSCLC (KEYNOTE-189 and KEYNOTE-407) • Encouraging early customer feedback in adjuvant melanoma • Lynparza sales doubled in the
Slide 6: Vaccines: GARDASIL Global Uptake Remains Robust
VACCINES: GARDASIL GLOBAL UPTAKE REMAINS ROBUST • Vaccine sales growth of +24%1 driven by GARDASIL and GARDASIL 9, fueled by ongoing commercial launch in China and demand in Europe, partially offset by public sector buying patterns in the U.S. • Pediatric vaccines, including PROQUAD / MMR-II / VARIV
Slide 7: Hospital/Specialty: BRIDION Demand Remains Strong
HOSPITAL/SPECIALTY: BRIDION DEMAND REMAINS STRONG • BRIDION annualizing at over $1 billion. Growth in the U.S. reflects increased utilization of BRIDION in procedures where neuromuscular blockade reversal agents are used • Ongoing PREVYMIS launch contributing to performance • Successful ZERBAXA tria
Slide 8: Animal Health: Sustained Performance
ANIMAL HEALTH: SUSTAINED PERFORMANCE International growth offsets U.S. decline highlighting benefits of global scale • Growth in companion animals, led by BRAVECTO, drove sales in the quarter. Growth also supported by new poultry and swine product sales • Customer buying patterns within the U.S. bus
Slide 9: Robust International Pharmaceutical Growth Led by China
ROBUST INTERNATIONAL PHARMACEUTICAL GROWTH LED BY CHINA1 -4% +4% +12% Canada +67% +9% Europe2 United States $343M China Japan +14% s\ Eastern Europe / +3% Middle East Africa +25% Asia Pacific Ex-China Latin America EX-U.S. GLOBAL PHARMACEUTICAL SALES +12% 1 All growth rates exclude the impact of exc
Slide 10: Financial Highlights
MERCK INVENTING FOR LIFE FINANCIAL HIGHLIGHTS
Slide 11: Financial Results Summary – Q1 2019
FINANCIAL RESULTS SUMMARY – Q1 2019 DELIVERED +11% REVENUE GROWTH AND +18% NON-GAAP EPS GROWTH (EX-FX) $ in millions, except EPS amounts Change Q1 2019 Q1 2018 Change Ex-FX Sales $10,816 $10,037 8% 11% GAAP net income1 2,915 736 > 100% > 100% Non-GAAP net income that excludes certain items 1,2 3,175
Slide 12: Balanced Approach to Capital Allocation
BALANCED APPROACH TO CAPITAL ALLOCATION INVESTING IN THE BUSINESS AND CREATING VALUE FOR SHAREHOLDERS Capital Investments $16.0B Over 5 years, including expanding manufacturing capacity for Oncology, Vaccines, and Animal Health. Includes approximately $9B in the U.S. Over the Past 12 Months Balanced
Slide 13: Updated Full-Year 2019 Guidance
UPDATED FULL-YEAR 2019 GUIDANCE PRIOR GUIDANCE 2019 UPDATED GUIDANCE 2019 KEY ASSUMPTIONS $43.2B - $44.7B $43.9B - $45.1B • Narrowed and Raised; Assumes Revenue +2% to +6% (+3% to +7% ex-FX) +4% to +7% (+5% to +8% ex-FX) slightly over 1% negative FX impact • Improved product mix and favorable Non-GA
Slide 14: What to Watch
WHAT TO WATCH KEY CLINICAL & REGULATORY CATALYSTS THROUGH 2020 Oncology Clinical Readouts Vaccines, Hospital/Specialty and Other Clinical Readouts KN-057 NMIBC Bladder (Ph2) MK-8591 Combination with doravirine (Ph2) MK-7264 Endometriosis-related Pain (Ph2) KN-119 2L TNBC (Ph3) V114 Study in Healthy
Slide 15: Merck Pipeline
MERCK PIPELINE Phase 2 Phase 3 Under Regulatory Review ONCOLOGY ONCOLOGY ONCOLOGY KEYTRUDA LENVIMA KEYTRUDA LENVIMA KEYTRUDA Cutaneous Squamous Cell Non Small Cell Lung Breast Endometrial Renal Cell Carcinoma* Carcinoma Biliary Tract Colorectal Renal Small Cell Lung Cancer Advanced Solid Tumors Esop
Slide 16: Corporate Responsibility That Creates Sustainable Value
CORPORATE RESPONSIBILITY THAT CREATES SUSTAINABLE VALUE CORPORATE RESPONSIBILITY IS AT THE HEART OF MERCK’S MISSION TO DISCOVER, DEVELOP AND PROVIDE INNOVATIVE PRODUCTS AND SERVICES THAT SAVE AND IMPROVE LIVES Access to Increasing access to health advances Merck’s efforts to serve more patients • Lo
Slide 17: Merck 2019 Investor Day
MERCK 2019 INVESTOR DAY Thursday, June 20, 2019 New York, NY 17 Event will be available via webcast at https://investors.merck.com
Slide 18: We try never to forget that medicine is for the people
We try never to forget that medicine is for the people. It is not for the profits. The profits follow, and if we have remembered that, they have never failed to appear. — GEORGE W. MERCK
Slide 19: Thank You
Thank You. € MERCK INVENTING FOR LIFE